Confusion over leasehold/freehold

Cerys1478

When we bought our house in 2012, we were told we would pay ground rent.
Naively we just assumed that's whats happened when you bought a new build house!

After we moved in and received all the paperwork, we had a letter saying we paid 200 a year for the first 5 years, then 500 for the next 5, then a 1000 etc. Which we had no idea about.

And now we've recently found out that our neighbor is freehold.

Are we able to buy the freehold? Should we have been given the option when buying the house? We are so confused!

We bought the house with persimmon and are on shared equity. We plan on remortgaging at the end of our fixed term next year to buy the equity back. Does that effect leasehold and freehold?

Thanks

G_M

Cerys1478 wrote: »

When we bought our house in 2012, we were told we would pay ground rent.
Naively we just assumed that's whats happened when you bought a new build house!

After we moved in and received all the paperwork,
I find this hard to believe - surely your solicitor sent you copies of the Title (or draft) and lease etc?
we had a letter saying we paid 200 a year for the first 5 years, then 500 for the next 5, then a 1000 etc. Which we had no idea about.
This would all be in the lease which your solicior must have sent you before Exchange

And now we've recently found out that our neighbor is freehold.
...? and...?

Are we able to buy the freehold?
Yes. If the freeholder wishes to sell.
Should we have been given the option when buying the house?
If the feeholder at the time did not wish to sell the freehold, he would not have given you the option.
We are so confused!

We bought the house with persimmon and are on shared equity. We plan on remortgaging at the end of our fixed term next year to buy the equity back. Does that effect leasehold and freehold?

Thanks

I'm not familiar with shared equity schemes but don't see how your shared owneship of a lease could affect the freehold in any way.

Who is the current freeholder?

KTpriceless

Are you confusing 'ground rent' with 'service charge' ?

TrickyDicky101

Cerys1478 wrote: »

After we moved in and received all the paperwork, we had a letter saying we paid 200 a year for the first 5 years, then 500 for the next 5, then a 1000 etc. Which we had no idea about.

Can you confirm these annual amounts are correct according to your lease (along with the 5 yearly ramp up and whether it continues ad infinitum or whether it ends 15 years down the line or whatever).

If what you have stated is accurate and the ramps continue for the next couple of decades then I suspect your freehold is going to cost rather a lot to acquire as the cost will be reflective of the present value of the future payments you must make.

katejo

KTpriceless wrote: »

Are you confusing 'ground rent' with 'service charge' ?

I imagine not. My lease stated similar for increases in ground rent after set time periods.